Underwood Company's ledger at the end of the current year shows Accounts Receivable of $150000.
Instructions
a. If Allowance for Doubtful Accounts has a credit balance of $4500 in the trial balance and bad debts are expected to be 8% of accounts receivable journalize the adjusting entry for the end of the period.
b. If Allowance for Doubtful Accounts has a debit balance of $4500 in the trial balance and bad debts are expected to be 8% of accounts receivable journalize the adjusting entry for the end of the period.

Question

Quizplus · Accepted Answer

The Answer of Underwood Company's ledger at the end of the current year shows Accounts Receivable of $150000.
Instructions
a. If Allowance for Doubtful Accounts has a credit balance of $4500 in the trial balance and bad debts are expected to be 8% of accounts receivable journalize the adjusting entry for the end of the period.
b. If Allowance for Doubtful Accounts has a debit balance of $4500 in the trial balance and bad debts are expected to be 8% of accounts receivable journalize the adjusting entry for the end of the period.

Underwood Company's Ledger at the End of the Current Year